Financial Performance - Total revenue for the first half of 2021 reached HKD 494.6 million, a 15.4% increase compared to HKD 428.5 million in 2020[13] - Net profit for the period was HKD 33.7 million, slightly down by approximately 2.3% from HKD 34.5 million in 2020[13] - Overall gross margin decreased by 0.9% despite an increase in sales volume and revenue[13] - The group's revenue for the period was HKD 494.6 million, an increase of 15.4% compared to HKD 428.5 million in the same period last year[23] - The group's gross profit was HKD 106.9 million, reflecting a 10.9% increase, with an overall gross margin of 21.6%, a slight decrease of 0.9% year-on-year[25] - Gross profit for the same period was HKD 106.928 million, up from HKD 96.426 million, indicating a gross margin improvement[64] - The company reported a net profit of HKD 33.666 million for the six months ended June 30, 2021, compared to HKD 34.536 million in the prior year[64] - The total profit attributable to ordinary equity holders for the six months ended June 30, 2021, was HKD 34,086,000, down from HKD 36,126,000 in the same period of 2020, representing a decline of 5.69%[119] Revenue Breakdown - Revenue from hydrophilic colloid products grew across all categories due to economic recovery trends[13] - Sales in the Chinese market accounted for 48.3% of total sales, with a significant increase of 20.5% compared to the previous year[14] - Revenue from Europe, North America, and South America increased by approximately 13.9%, 27.5%, and 8.4% respectively during the period[14] - The revenue growth for agar, carrageenan, konjac, and blended products was recorded at 22.2%, 8.9%, 50.6%, and 26.3% respectively, with agar and carrageenan accounting for 85.7% of total revenue[23] - Revenue from external customers by region showed that China contributed HKD 238,662,000, Europe contributed HKD 165,060,000, and North America contributed HKD 15,344,000, indicating strong growth in the Chinese market[104] Expenses and Costs - The group's administrative expenses increased by 28.7% to HKD 44.9 million, primarily due to rising employee salaries and travel expenses[28] - The cost of sales for the period was HKD 494,634,000, with a gross profit margin of approximately 21.5%[100] - The company incurred administrative expenses of HKD 44,948,000, which is an increase from HKD 34,925,000 in the previous year[100] Cash Flow and Liquidity - As of June 30, 2021, the group's cash and cash equivalents totaled HKD 114.3 million, a decrease of HKD 57.5 million from December 31, 2020[35] - The current ratio as of June 30, 2021, was 1.30, down from 1.63 at the end of 2020, indicating a decrease in liquidity[35] - The company reported a net cash outflow from operating activities of HKD 15,765,000 for the six months ended June 30, 2021, compared to a net inflow of HKD 13,144,000 in the same period of 2020[76] - Cash and cash equivalents at the end of the period stood at HKD 114,287,000, an increase from HKD 98,683,000 at the end of the previous year[76] - The company’s cash and bank balances decreased to HKD 114.287 million from HKD 171.842 million at the end of 2020[69] Acquisitions and Investments - The group completed the acquisition of a majority stake in PT Hongxin Algae International, enhancing operational efficiency and proximity to seaweed resources[18] - The group completed the acquisition of 82% of Hung Tai Shun for a total consideration of HKD 60.0 million on April 15, 2021, which will increase the total designed capacity for semi-refined carrageenan to 7,985 tons per year[42] - The company completed the acquisition of 82% of Hung Tai Shun for HKD 60 million, which holds 99.83% of Hongxin, a manufacturer of semi-refined carrageenan in Indonesia[52] - Cash outflow for the acquisition of Hung Tai Shun International Trading Limited was HKD 33,143,000 after accounting for cash acquired[167] Shareholder Information - The proposed interim dividend per ordinary share is HKD 0.015, down from HKD 0.025 in 2020, totaling HKD 12,312,000[124] - The company has undistributed earnings of HKD 441,291,000 as of June 30, 2021, compared to HKD 405,751,000 as of December 31, 2020[114] - The company’s total liabilities to related parties increased to HKD 27,203,000 from HKD 106,000, indicating a substantial rise in related party transactions[173] - Mr. Chan Kin Chung holds a 19.70% equity interest in the company with 161,700,000 shares and a 71.64% interest through a concert party agreement with 588,000,000 shares[180] Financial Position - The total assets as of June 30, 2021, were HKD 1,578.267 million, an increase from HKD 1,428.765 million at the end of 2020[69] - The company’s total equity increased to HKD 802.888 million as of June 30, 2021, compared to HKD 754.105 million at the end of 2020[69] - Total liabilities increased to HKD 775,379,000 as of June 30, 2021, up from HKD 674,660,000 as of December 31, 2020, representing a growth of 14.9%[72] - The company’s bank borrowings increased to HKD 512,540,000 as of June 30, 2021, compared to HKD 461,541,000 at the end of the previous year, an increase of 11.0%[72] Risk Management - The group has limited foreign exchange risk exposure, primarily dealing in RMB and USD, and plans to monitor and hedge against any significant risks[43] - The group’s financial risk management policy has remained unchanged since the end of last year, focusing on minimizing potential adverse impacts on financial performance[91] - The group’s financial risk factors include market risk, credit risk, and liquidity risk, emphasizing the unpredictability of financial markets[90] Employee Information - The group has a total of 1,052 full-time employees, with 1,011 located in mainland China and 41 in Hong Kong and other regions[44] - The remuneration for key management personnel increased to approximately HKD 7,921,000 from HKD 6,135,000, reflecting a growth of about 29.2%[175] Corporate Governance - The company’s board and senior management have disclosed their interests in the company’s shares and related securities as required by the Securities and Futures Ordinance[180] - The company approved the pre-IPO share option plan on August 5, 2018, to recognize contributions from certain individuals towards the successful listing on the main board[193]
绿新生物科技(01084) - 2021 - 中期财报